Question

Your financial goals and aspirations can be differentiated according to several criteria, including their target completion dates, potential effectiveness, importance, and estimated cost, among others.

 Identify whether each goal-writing practice will make the goal more or less effective. 

Mia wrote her short- and intermediate-term goals first, then her long-term goals. 

Mae's desired financial outcomes are not expressed in monetary terms and are not prioritized. 

Colt recognizes that goals, particularly long-term goals, may have to be revised to accommodate changes in desires and life circumstances. 

David wrote goals that are consistent with his personality and attitudes toward money management.

Answer 1

1. Mia wrote her short- and intermediate-term goals first, then her long-term goals. Less Effective.

When it comes to goals, it is most effective to visualize the long-term goal in order to effectively identify and establish short- and intermediate-term goals that can help achieve the long-term goal. Writing down multiple short goals will make the process haphazard and might lead for Mia to lose sight of her long term goal.

2. Mae's desired financial outcomes are not expressed in monetary terms and are not prioritized. Less Effective.

A financial outcome should always be expressed in terms of money for it to have an established effect in Mae's activities towards reaching that goal. For example, assume Mae wants to save some money by the end of the month and buy a car. This is a goal. But it is not effective because she has not prioritized whether saving the money comes first or getting a car. And also, there is no clarity on how much money she wants to save. It could be $1 to $1,000. So, it is easier to justify falling short of one's goal if it is not properly identified. Chances of procrastination increases.

3. Colt recognizes that goals, particularly long-term goals, may have to be revised to accommodate changes in his desires and life circumstances. More Effective.

Although it is not advisable to keep changes goals, it is never advised to keep them rigid either. Depending on prevailing circumstances parts of a goal can be altered to best adhere to a relative end-result.

4. David wrote goals that are consistent with his personality and attitudes toward money management. More Effective.

Making goals that are not aligned with the person's character will not only make it ineffective, it will also become tha hard for the person to follow through with the goal.